4 Fast Tricks to Solve Compound Interest

Published on Thursday, April 27, 2017

By NEHA KASHYAP

In the context of compound interset, sometimes there arises a situation when the borrower and the lender fix up a certain unit of time (like yearly or half-yearly or multiples of n where n is the no of years infractions)

In such case, the amount becomes the principle for the second unit of time after the first unit of time(n=1)

Different cases are as follows:-

Case I

when the compound interest is calculated half-yearly
if the rate is r% per annum and time is n years then the corresponding rate and time are n/2 and 2*n respectively.
A = P[1 + (r²)/100]²n
where A= amount
P=principle
r=rate
t=time in years